Sluggish Commercial Construction Sinks May 2009 Building, Says Census Bureau

July 17, 2009
The U.S. Census Bureau of the Department of Commerce said construction spending during May 2009 was estimated at a seasonally adjusted annual rate of $964 billion, 0.9 percent below the revised April estimate of $972.5 billion

The U.S. Census Bureau of the Department of Commerce said construction spending during May 2009 was estimated at a seasonally adjusted annual rate of $964 billion, 0.9 percent below the revised April estimate of $972.5 billion. The May figure is 11.6 percent below the May 2008 estimate of $1,090.7 billion. During the first five months of this year, construction spending amounted to $368.8 billion, 11.7 percent below the $417.5 billion for the same period in 2008.

Private construction. Spending on private construction was at a seasonally adjusted annual rate of $649.2 billion, one percent below the revised April estimate of $655.6 billion. Residential construction was at a seasonally adjusted annual rate of $240.2 billion in May, 3.4 percent below the revised April estimate of $248.8 billion. Nonresidential construction was at a seasonally adjusted annual rate of $409 billion in May, 0.5 percent above the revised April estimate of $406.9 billion.

The segments of the private construction market with the largest year-to-year decreases were commercial (-28.4%); residential (-33.3%); communication (28.7%); lodging (-17.8%); and office (-12.1%).

Public construction. In May, the estimated seasonally adjusted annual rate of public construction spending was $314.9 billion, 0.6 percent below the revised April estimate of $316.9 billion. Educational construction was at a seasonally adjusted annual rate of $91.3 billion, 0.5 percent above the revised April estimate of $90.8 billion. Highway construction was at a seasonally adjusted annual rate of $78.5 billion, 1.3 percent below the revised April estimate of $79.5 billion.